[HN Gopher] Stock Sale Day Before Fed Emergency
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Stock Sale Day Before Fed Emergency
Author : andrew_
Score : 36 points
Date : 2021-10-02 21:05 UTC (1 hours ago)
(HTM) web link (www.zerohedge.com)
(TXT) w3m dump (www.zerohedge.com)
| rich_sasha wrote:
| I distrust ZeroHedge to the point that I would assume they're
| actively lying about stuff most of the time, but... if true, this
| would be beyond shocking.
| bloodyplonker22 wrote:
| The "smarter" fake news bloggers usually post things that have
| some degree of truth and are much harder to prove as actually
| fake.
| quickthrowman wrote:
| Zero Hedge is a mix of a bit of good info, but mostly bad
| permabear takes. This is the former:
| https://www.reuters.com/article/usa-fed-ethics-clarida/fed-v...
| pliny wrote:
| He made those trades in late February, not late march, so if the
| result of those trades was net long he probably did worse than
| people who traded after hearing the announcements.
| newaccount2021 wrote:
| The Fed may possibly be more powerful than the Federal government
| during peacetime. Almost every problem in our economy can be
| traced back to Fed meddling. Misinvestment, malinvestment,
| inflation, moral hazard...the list goes on and on. The Fed truly
| does reward its clients...the growth in hyper-wealth has created
| a whole new class of ultra-rich while most toil away with no gain
| in real wages, left to rent their lives as assets climb to the
| stratosphere thanks to the Fed.
|
| Contrarians on HN love to argue that there is no inflation. I
| bought our current house three years ago. According to Zillow and
| comparable sales, it has TRIPLED in value since 2018. If you
| don't think there is inflation....
| Dylan16807 wrote:
| Inflation isn't measured in house prices. If you even tried to
| make that a major factor, you'd get ridiculously different
| measures of inflation in different cities.
| readthenotes1 wrote:
| Inflation used to include house prices until the 1980s where
| they wanted to quell inflation. An easy way to do it was to
| change the definition.
|
| Now, it includes something called owner equivalent rent, to
| include both rent and owning a house.
|
| The intent is to include a house prices in inflation
| indirectly.
| joe_the_user wrote:
| Economists do talk about asset inflation [1]. The Fed and the
| media not so much. The price of housing is very much a
| symptom of asset inflation and this is plausibly the result
| of the Fed continually injecting money into and/or
| "backstopping" various capital markets.
|
| [1] https://en.wikipedia.org/wiki/Asset_price_inflation
| Dylan16807 wrote:
| Assets matter, but are any other physical assets going up
| the same way?
| ecommerceguy wrote:
| The optics are certainly very bad on the timing and size of these
| trades to the point where it should be investigated for an ethics
| violation. That will NEVER happen.
| noway421 wrote:
| Not disputing any points in general, interesting read. But in the
| end of the article: the fact that he has many bank accounts may
| be used for accounting purposes? The document doesn't say if the
| bank accounts are with different banks or with the same bank. And
| it's not like he has 250k in each bank account, which would
| allude to FDIC insurance limit, either.
| leoedin wrote:
| It seems kind of crazy that the incredibly distorting effect of
| consistently low interest rates, quantitive easing and other
| central bank policies - mostly to the benefit of existing capital
| owners - is seen as almost a-political in the West.
|
| We argue about other things - like tax rates and social security,
| and meantime our central banks carry on with their mission almost
| unchallenged. Central banks have managed to create an aura of
| science over what they do.
|
| Mean while the cumulative policies of the last decade have
| created incredible asset price inflation, mostly to the detriment
| of the young. Is this healthy for society? That doesn't seem to
| be a question the (mostly baby boomer) people making these
| decisions are asking.
|
| The central banks try to paint themselves as mere lever pullers,
| reacting to inflation and economic growth with their interest
| rates. But the system is so much more complicated than that - all
| these other unseen effects rippling through the economy and
| affecting people's lives.
| [deleted]
| strikelaserclaw wrote:
| The kind of people who even know this is happening are the ones
| who have a vested interest to keep it there in the first place.
| People are selfish and greedy.
| jjoonathan wrote:
| Yes, it's nuts.
|
| The moment that younger generations realize that inflation
| reduces debt, I predict that, ummm, the baton will be firmly
| gripped, yanked, and the equilibrium will shift hard in the
| opposite direction. Then we'll have a different set of
| problems.
| zzzzzzzza wrote:
| the distortion is much more fundamental than interest rate
| policy.
|
| The real distortion is taxing income and sales and not land or
| other forms of monopoly rent.
|
| creating the vast majority of money through mortgages or
| student loans to motivate people to work hard as slaves for
| feudal masters.
|
| central banks have no control over that fundamental design
| decision, they just oil it, but if they didn't it wouldn't be
| any prettier of a sitution.
| wonnage wrote:
| Government spending on social programs would be a much more
| straightforward way to create money, but seems politically
| impossible
| wonnage wrote:
| Housing demand has many inputs, only one of which is low
| interest rates. It's not like we've exhausted the economy's
| capacity to build... NIMBY policies and a general demographic
| shift towards living in cities (which may be reversing) are
| also to blame.
|
| Inflation has myriad causes and money supply is the culprit
| only when you have too many dollars chasing an at-capacity
| resource.
| lend000 wrote:
| It isn't really apolitical. Ironically, it seems to be more
| supported by the left (like the people downvoting you), despite
| the lack of consistency with progressive economics. I suppose
| it enables big spending and debt, which can be progressive,
| while more than undoing itself with X-inflation + deadweight
| loss.
| jjoonathan wrote:
| > Ironically, it seems to be more supported by the left (like
| the people downvoting you)
|
| Speak for yourself.
|
| > it enables big spending and debt
|
| No, low interest rates are not what enables big government
| debt. The government can monetize its debt -- money printer,
| remember?
|
| > , which can be progressive, while more than undoing itself
| with X-inflation + deadweight loss.
|
| Well, if the losses trickle down as effectively as the last
| 40 years of gains, I think the bottom 90% of the pyramid
| should rather welcome those losses.
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(page generated 2021-10-02 23:01 UTC)